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About 43% of taxpayer requests for copies of tax returns or for transcripts are not processed correctly, according to a report by the Treasury Inspector General for Tax Administration. The Internal Revenue Service should strengthen its controls over transcripts and copies of returns to protect personal information, the report said. Other recommendations: The IRS should check all taxpayer names and Social Security numbers before processing requests; should make certain that copies are sent to the correct address; should develop guidelines on how to process requests for taxpayers who are victims of identity theft; and should reduce or eliminate fees for copies of e-filed tax returns.

Related Summaries

The IRS alerted the public that an additional 220,000 taxpayers had their tax-return information compromised in the Get Transcript database breach it announced in May, bringing the total to about 334,000 taxpayers. The IRS said it is contacting the affected taxpayers to notify them and offer services to help protect their information.

Government requests for user data in the second half of 2013 decreased at Yahoo to 21,425, compared with 29,740 in the first six months of the year. Google reported receiving 27,477 government requests in the second half of 2013, up from 25,879 in the prior six months. The most recent figures do not include requests by security officials acting under the Foreign Intelligence Surveillance Act.

The FDA has declined requests from three federal judges to decide whether labeling on genetically modified food should be permitted to use the term "natural," sources say. The Maine Grocers and Food Producers Association opposes a state law that will require labeling of GM food if five other states do the same. Connecticut has a similar law, while Vermont and New Hampshire are expected to consider legislation this year.

The Internal Revenue Service published final regulations and guidance on the mandatory e-filing rules for tax return preparers that are effective this year. The rules and guidance cover who is an affected preparer, when taxpayers or their preparers can still mail returns, how preparers can qualify for a hardship waiver, and administrative exemptions the IRS has granted.

Patricia Thompson, vice chair of the Tax Executive Committee at the AICPA, said the proposal from the IRS to require professional tax-return preparers to use an identification number "should be sufficient to address problems with unethical and incompetent tax-return preparers." However, Thompson, CPA/PFS, expressed industry concerns about the ID proposal. She also asked for a delay in any new examination processes for tax preparers.